Structured note

Structured Note
A structured note, sometimes called "hybrid debt," is an intermediate term debt security, whose interest payments are determined by some type of formula tied to the movement of an interest rate, stock, stock index, commodity, ...

Structured notes
Structured notes are bonds that contain embedded derivatives, usually some type of embedded option.
If the embedded derivative is an option, then either issuer or the holder may be the option writer.

What Is a Structured Note?
A structured note is an IOU from an investment bank that uses derivatives to create the desired exposure to one or more investments.

Structured note
Definition: [crh] A derivative investment that will change in value with movements of an underlying Definition: index; or a note whose issuer makes swap arrangements to alter its required cash flows.

indexed securities (structured notes)
bond derivatives of short-term duration whose principal or coupon value is determined by a market index. Market indexes that can be utilized include securities, commodity prices, and short-term bond rates.
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Another example would be a structured note linked to some equity index. These take many forms. Typical would be a five year note. It is a debt instrument issued by a corporation or sovereign, but instead of paying interest, it returns the greater of ...

Structured Notes - Debt securities, such as inverse floaters and step-up notes, in which the repayment of interest, and sometimes principal, is tied to movements in an underlying index.

Structured note
A package of a conventional interest rate swap and a derivative embedded in it.
Substitution
The terms of the swap may allow the substitution of the reference obligation during the life of the swap.

structured notes
The broad, regulatory definition of this term is debt securities whose cash flow characteristics (coupon, redemption amount, or stated maturity) depend upon one or more indices and/or that have embedded forwards or options.

Structured note
A derivative investment that will change in value with movements of an underlying index; or a note whose issuer makes swap arrangements to alter its required cash flows.
Structured settlement ...

A type of structured note whose payment schedule is determined by the behavior of interest rates.

For example, the return on debt securities known as structured notes is determined by the performance of a stock index such as the Standard & Poor's 500 (S&P 500) rather than the market interest rate.

Structured note
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corporations in the United States. Includes bonds, MTNs, structured notes and commercial paper. The corporate sector is divided into investment grade and non-investment grade sectors by rating agencies such as Moody's and S&P.

asset with option an asset that is associated with an option or other derivative or structured note
Recommended Further Reading (Term count) ...

We distribute all levels of Canadian government (federal, provincial, municipal) and corporate (investment grade and high yield) debt as well as a wide list of products in other markets and currencies, including MTNs, structured notes, globals, ...

DERIVATIVES - Financial securities whose value is derived from another "underlying" financial security. Options, futures, swaps, swaptions, and structured notes are all examples of derivative securities.

In finance, an exotic option is a derivative which has features making it more complex than commonly traded products (vanilla options). These products are usually traded over-the-counter (OTC), or are embedded in structured notes.

Debt that has been customized for the buyer, often by incorporating unusual options.
Structured note ...

structured note This is a debt security with multiple special features, such as making payments... structured portfolio strategy A strategy that shapes a portfolio in a way that allows it to generate profits...

See also: Banks, Values, Bills, Payment-in-kind, Funding